Streamline the IPO process by UPI and settling investor concerns: SEBI
The Securities and Exchange Board of India (SEBI) has released a circular with an aim to streamline the operation of IPOs with UPI in ASBA and resolving investor complaints.Issues include delay in receipt of mandate by investors for blocking of funds due to systemic issues at intermediaries, failure to unblock funds for cancelled or withdrawn cases in the stock exchanges platform etc, need to be addressed. As a result, various steps must be taken to ensure continuity in policy and to streamline the reconciliation process among intermediaries/SCSBs.
The Lead Manager will be the nodal agent for resolving any problems that arise during the public issuance period, and the deadlines, procedures, and payout policy should be included in the agreements signed by the intermediaries. They should ensure that intermediaries follow deadlines and payout policies. SCSBs shall identify the nodal officer for IPO applications that use UPI as a payment channel and submit them to SEBI within 7 days, as well as send SMS notifications for mandate block and unblock.
